What cyber security insurance companies do differently to match the cyber threat landscape
Cybercrime pertains to any criminal activity executed through computers and the Internet. Many who engage in this activity have the goal of profiting from the stolen information. These threats are becoming increasingly rampant today. Oftentimes, the target of such malicious actions is big businesses. However, even small companies are prone to attacks.
According to reports, 81% of big UK businesses and 60% of small companies suffered from security breaches in the last year alone. As an initiative to help firms manage cyber risk, the government and Marsh, a leading UK insurance broker and risk advisor, announced partnerships between the government and insurance sector. This partnership aims to use cyber insurance as a tool to prevent cybercrime and establish the UK as a worldwide leader in mitigating cyber threats.
Impact of cybercrime on companies and the economy
It was further confirmed that cyber threats are becoming more sophisticated as companies continue to rely upon online channels of distribution. The economy faces billions in losses each year as a result of these threats. The call to action is targeted at insurance companies in order for them to simplify their offerings and help companies understand how they are protected against cyber-attacks.
Companies also have the responsibility to change their outlook towards cybercrime. They need to look beyond the problem at the IT level and understand the overall risks it poses to the organisation. Companies should be aware of the types of threats they are prone to and be able to prepare for the worst-case scenario. They should also have plans put in place in case recovery efforts are needed. When a company is willing to invest in new technology and measures to enhance security, they can also look at R and D tax credit options as an extra benefit.
What cyber security insurance can do for a company
Part of the goal of the partnership is to increase the awareness of companies regarding the benefits of cyber security insurance. It was further found that insurance companies can help businesses through the following areas:
- Insurance companies have the capability to help companies in managing potential cyber risks. They can educate firms and encourage the adoption of best practices for cyber security.
- The insurance sector in the UK is already a world leader. With further initiatives driven towards cyber security, it will further cement the country’s reputation to be the safest place in the world to conduct business online.
Companies should continue to review risk management procedures in place and include cyber threats as part of their overall scheme. It is the aim of the government and insurance brokers to adopt a Cyber Essentials certification as part of their risk assessment for businesses. This is designed to encourage greater cyber security adoption from big and small companies alike.